Layne Christensen Co. v. Purolite Co.

271 F.R.D. 240, 2010 U.S. Dist. LEXIS 76205, 2010 WL 3001744
CourtDistrict Court, D. Kansas
DecidedJuly 28, 2010
DocketCivil Action No. 09-2381-JWL-GLR
StatusPublished
Cited by45 cases

This text of 271 F.R.D. 240 (Layne Christensen Co. v. Purolite Co.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Layne Christensen Co. v. Purolite Co., 271 F.R.D. 240, 2010 U.S. Dist. LEXIS 76205, 2010 WL 3001744 (D. Kan. 2010).

Opinion

MEMORANDUM AND ORDER

GERALD L. RUSHFELT, United States Magistrate Judge.

Pending before the Court is Defendant’s Motion for Protective Order (doc. 37). It seeks a protective order, pursuant to Fed. R.Civ.P. 26(c), to limit the disclosure of confidential information produced during discovery in this patent infringement and breach of contract case. The parties agree that a protective order should be entered, but they disagree about its scope and some of its [243]*243provisions. Specifically, they disagree whether a two-tier protective order is appropriate, which would allow the parties to designate some materials as limited to “Attorneys’ Eyes Only.” If the Court allows such an order, they disagree whether co-plaintiff and patent co-inventor, Dr. SenGupta, should have access to materials designated as “Attorneys’ Eyes Only.” They also disagree whether the order should require the parties to provide advance notice of the identity of any consultant or expert to whom the designated materials might be shown. As set forth below, the Court grants the motion in part and denies it in part.

I. Background Facts

By its amended complaint, Plaintiff Layne Christensen Company (“Layne”) asserts claims for patent infringement and breach of contract against defendant The Purolite Company (“Purolite”). Plaintiff alleges that Defendant has infringed upon its patent for the manufacture and application of hybrid anion exchangers for selective removal of contaminants from fluids. Plaintiff Layne, as the successor-in-interest to the company SolmeteX, also asserts a claim against Defendant for breach of an agreement with Solme-teX for the manufacture and supply of resin beads for removal of compounds that contain arsenic from water supplies.

On September 18, 2009, Defendant filed a Motion to Transfer and to Dismiss for Failure to Join a Party (doc. 15). It sought a dismissal, pursuant to Fed.R.Civ.P. 12(b)(7), for Plaintiffs failure to join a necessary party under Fed.R.Civ.P. 19. Defendant argued that Dr. Arup SenGupta, as the patent owner and licensor, is a necessary party. Dr. SenGupta is an inventor of the patent at issue. On December 4, 2009, the Court granted that motion in part and ordered Dr. SenGupta, as patentee, to be joined as a necessary party under Fed.R.Civ.P. 19.1 Plaintiff thereafter filed an amended complaint (doe. 22), joining Dr. SenGupta as a plaintiff.

On March 4, 2010, Plaintiffs Layne and SenGupta submitted their proposed single-tier protective order to Defendant for review and comment. On March 23, 2010, counsel for Defendant responded with a modified, proposed protective order that would authorize a party to designate materials produced during discovery as either “Confidential” or “Attorneys’ Eyes Only.” Under such a two-tier classification, materials designated as “Attorneys’ Eyes Only” would be more restricted as to who could view them. On March 24, 2010, counsel for Plaintiffs responded with an email, attaching a further revised draft. It retained the two-tier classification and the more restrictive disclosure limitations for “Attorneys’ Eyes Only” materials. The email transmitting the revised draft noted three issues that remained outstanding: (1) waiver of attorney-client privilege documents that materially contradict a position of the producing party; (2) whether Dr. SenGupta should be prevented from viewing the “Attorneys’ Eyes Only” documents; and (3) whether the parties should be required to give advance notice of intent to provide confidential documents to consultants and experts. On March 25, 2010, the attorney for Plaintiffs emailed yet another draft to defense counsel. It also retained the two-tier classification and the provision for “Attorneys’ Eyes Only”. The communication neither mentioned nor raised any issue about those provisions. On April 7, 2010, Defendant filed the instant Motion for Protective Order. The motion asks for the two-tier classification with the “Attorneys’ Eyes Only” disclosure restrictions.

On April 13, 2010, the parties exchanged initial disclosures, pursuant to Fed.R.Civ.P. 26. They also agreed that they would abide by the terms of Defendant’s proposed protective order, pending a ruling by the Court upon the instant motion. Later the same day Defendant served its responses to Plaintiff Layne’s First Request for Production of Documents and produced 8,504 documents. All of the documents contained the designation “Confidential-Attorneys’ Eyes Only.”

On April 22, 2010, Plaintiffs filed their response in opposition to the instant motion. They argue that a two-tier protective order is unnecessary. They have submitted their [244]*244proposed order, without two tiers, as sufficient to protect any sensitive information disclosed in this action.

II. The Standard for Issuing a Protective Order Limiting the Disclosure of Confidential Information

Federal Rule of Civil Procedure 26(c) “confers broad discretion on the trial court to decide when a protective order is appropriate and what degree of protection is required.”2 The trial court is in the best position to weigh fairly the competing needs and interests of parties affected by discovery.3 Federal Rule of Civil Procedure 26(c) provides that the court, upon a showing of good cause, “may issue an order to protect a party or person from annoyance, embarrassment, oppression, or undue burden or expense, including ... requiring that a trade secret or other confidential research, development, or commercial information not be revealed or be revealed only in a designated way.” 4 The party seeking a protective order has the burden to show good cause for it.5 To establish good cause, that party must submit “a particular and specific demonstration of fact, as distinguished from stereotyped and conclusory statements.”6

A special type of protective order, one that limits the disclosure, use, and dissemination of the parties’ confidential information, also requires a showing of good cause under Rule 26(c). For these types of protective orders, the party or parties seeking the protective order must provide a “concise but sufficiently specific recitation of the particular facts in this case that would provide the court with an adequate basis upon which to make the required finding of good cause pursuant to Fed.R.Civ.P. 26(c).”7

III. The Parties’ Disputes Regarding their Proposed Protective Orders

The parties agree that a protective order is appropriate.

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Bluebook (online)
271 F.R.D. 240, 2010 U.S. Dist. LEXIS 76205, 2010 WL 3001744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/layne-christensen-co-v-purolite-co-ksd-2010.